Answer:
Present value = $45,185,606
Explanation:
Data:
number of periods(n) = 17 years
First-year profit = $5 million
Growth rate = 2%
Interest rate = 10%
Present value = ?
Solution:
The present value of the growing annuity can be calculated as follows
Formula:
Let's denote
annual interest rate = x
annual growth rate = y
Present value = First-year profit x
Present value = $5,000,000 x
Present value = $5,000,000 x 9.03
Present value = $45,185,606
Answer:
The correct answer is Option A.
DR Accumulated Depreciation – Equipment 48,000; DR Loss on Disposal of Plant Assets 72,000; CR Equipment 120,000
Explanation:
Obsolescence of an asset occurs when the value of an asset has reduced drastically due to radical technological innovation or there is now a better technique used in the production process that renders the old equipment worthless or less productive.
<em>Note that the proceed on the disposal is zero since the organization did not put up the asset for sale.</em>
According to the adjustment of the this paragraph, if the United States were to implement fast visa processing, it would allow for a tourism. level of security.
Explanation:
- It would allow for a tourism. level of security
- By implementing such measures, the United States would no longer face any trouble between security and the number of visitors to the United States.
Answer:
The correct answer is letter "B": limits on interest rates charged by credit card companies.
Explanation:
A Price Ceiling is a maximum amount a seller can charge for a product or service. A regulating authority -usually the local government- enforces price ceilings and they are typically set to protect low-income consumers for being priced-out of markets of essential goods and services.
Apartments provide a common example. Some cities provide price ceilings on what the landlords can charge for rent. A price ceiling in credit card interest rates would all into this category as well.